From April 2018 onwards, Ofgem are set to induce significant penalties to those exceeding the assigned energy capacity for half hourly electricity supplies. The new charge will be known as DCP 161, and is an amendment to the DCUSA (Distribution Connection and Use of System Agreement.)
This will be in addition to the extra costs from distribution network operators (DNO) that is already applied to customers that have exceeded their available capacity levels.
Reducing your electricity usage
There is currently no penalty in place for exceeding electricity capacities other than the charge from the provider (DNO). These charges are also very minimal, so do not provide customers with an incentive to review and decrease their usage where possible.
The DCP 161 means that from 1st April 2018 customers could be paying a penalty of up to three times higher than their standard rates. The official rates haven’t yet been published, but it is expected that where the demand is higher, the cost will be more.
It is vital that you have a full understanding of your electricity usage before April, because customers could be paying up to 1-2% more on the overall electricity costs depending on consumption. Biomass energy is getting very popular for businesses as it can help them save money, get more information about the advantages of biomass energy.
For any sites currently incurring excess capacity charges, it is crucial that you agree a revised import capacity with your supplier or look into reducing energy use during peak hours. The Energy Desk have a range of solutions to help your business save energy and money, take a look at our selection of energy saving services for businesses.
Take a look at our services for high intensive charges in more detail.
How The Energy Desk can help
TED supports businesses across the UK to ensure that they are paying the lowest energy costs possible. Our team of specialists work with companies to optimise bills, negotiate with energy suppliers and provide advice to reduce usage and costs.
We offer energy procurement services for electricity usage within businesses. Read more about our energy procurement.